the cuts are not really new but simply counting the saving from the wind down of the wars in iraq and afghanistan. senate republicans say reid was with them on a two-step increase process, but that the white house shot that down. and the white house says it's all up to boehner to find a way forward. now, pressure is mounting, so is anxiety over the markets. here's white house chief of staff bill daley on "meet the press" yesterday. >> we are now getting to a point where i think markets around the world will question whether the political system in washington can come together and compromise for the greater good of the. >> country. >> the new fear. a downgrade in america's credit rating even if a debt creeling is raised. if only for six or nine months if it looks like washington can't figure out a long-term debt and deficit issue. by the way, something else going on here. the white house is basically out of the talks. harry reid is proxy for the white house. there isn't much communication going on between house republicans and the white house. it looked like yesterday morning that might not be the